Ability of an instrument to measure what it's intended to measure & how well the instrument measures.

Validity

Ability of an instrument to measure consistently. Also the ability to repeat an experiment & get similar results.

Reliability

Project planning tool that graphically displays activities of a project in sequential order and plots them against time.

Gantt chart

System of moral principles and values that establish appropriate conduct. It's not always tied to legality, but is a critical part of an organization's responsibility socially, for employees, and the community at large.

Ethics

Detailed steps a unit, department or team will take to achieve short-term objectives.

Action plans

Group of people born after 1980

Generation Y

Proposal presented to a legislative body for possible enactment as a law.

Bill

Expected distribution given a random sampling across a large population

Normal distribution

To Operations, an after-the-fact evaluation of a company's ability to meet it's own specifications & customers' needs.

Control

Measure that indicates the relationship between two variables. If the measurement is +1, and one number increases the other one will too.

Correlation

Combination of two separate companies, either by joining together as relative equals or by one acquiring the other.

Mergers and acquisitions (M&A)

Process of conducting an intensive investigation of an organization as one of the first steps in a pending merger or acquisition.

Organizational structure that combines departmentalization by division and function to gain the benefit of both.

Matrix structure

Describe what is important to an organization, dictate employee behavior, and create the organization's culture.

Values

Business function responsible for selling a product to the marketplace

Sales

Organizational structure in which segments are separated by product, customer, market or region.

Divisional structure

What an organization sells to make a profit

Product

Measuring the financial value of an action. The ratio of the value of an investment to its cost. This allows management to determine the financial impact an activity or program has on the company's profitability.

Cost-benefit analysis

Group of people born roughly between 1965 and 1980.

Generation X

Money an organization owes its vendors & suppliers

Accounts payable

Distance between highest & lowest scores in a set of data. (Numerically, it's the highest score minus the lowest score)

Range

Process that helps an organization focus on how to succeed in the future by evaluating the current status, where it would like to be, and how to get there.

Strategic planning

Organization's debts and other financial obligations

Liabilities

Record of how much cash is flowing into & out of an organization (including its sources or destinations)

Cash flow statement

Group of persons or objects, or complete set of observations or measurements, about which one wishes to draw conclusions.

Population

Form of budgeting in which the prior budget is the basis for allocation of funds.

For Operations, it provides the yardstick by which the amount & quality of output are measured.

Standards

Milestones that must be achieved, usually within 6 months to 1 year, in order to reach long-term objectives

Short-term objectives

Form of budgeting in which an average cost is applied to comparable expenses, and general funding is changed by a specific amount.

Formula budgeting

Analysis that shows point in time at which total revenue associated with a program is equal to the total cost of the program. After this point, savings are realized because the cost of the program has already been covered.

Break-even analysis

Measurement showing the efficiency with which an organization uses resources available for investment. Determine whether an investment has enough value to be worthwhile.

Return on investment (ROI)

Number of members of an organization that have to be present before official business may be conducted.

Quorum

Degree to which decision-making authority is restricted to higher levels of management.

Centralization

Specifies what the organization does, who its customers are & the priorities it has set in pursuing its work.

Mission statement

Organizational structure that defines departments by what services they contribute to the organization's overall mission.

Functional structure

Network that delivers products and services from raw materials to end customers through the flow of information, physical distribution & cash.

Supply chain

Combined knowledge, skills and experience of a company's employees.

Human capital

To an Operations department, this is an organization's major asset (after physical buildings and equipment).

Inventory

Action of canceling or postponing a decision or bill.

Veto

When conducting an environmental scan, HR should consider these 7 external factors which can impact the organization.

Demographic factors

Economic factors

Employment factors

International actors

Political factors

Social factors

Technological factors

In an environmental scan, HR should consider demographic impacts such as...

B. Cost-benefit analysis would be good for assessing budgeting for new staff

A major reason to use a balanced scorecard to measure strategic progress is that this approach:

A. Provides a rounded assessment of the results of strategic activity

B. Can be accomplished quickly

C. Extends protection against legal risks

D. Can be repeated periodically

A. A balanced scorecard provides an over-all assessment

Privacy, violence in the workplace, conflict of interest, diversity, copyrights, transparency in communication with investors, whistle blowing, payoffs. There are governmental regulations for [these] type of issues.

An individual appointed to oversee the ethics function in an organization. This person should: report to the CEO & board, be highly visible, a dedicated confidential resource, have a good working relationship with HR.

Ombudsperson or chief ethics officer

For a Corporate Citizenship Program to be successful:

Run the program like a business

Be aligned with the organization's strategic plan

Demonstrate impact on the bottom-line

Solicit employee input & participation

Primary benefit of appointing a chief ethics officer

Consistent communication of values and standards

If Congress is in session & the president takes no action for [how many] days on signing a bill, it automatically becomes a law.

10

Anyone may draft a bill, however only members of this group can introduce legislation.

Congress

Laws are made by [group] (like mandating establishing safe drinking water satandards). Then rules are made by [group] (like developing the list of contaminants & safe levels).

Laws are made by legislatures, and rules are made by agencies.

The primary ethical problem of a company's employee having a separate consulting contract with one of the company's clients is that of...

conflict of interest

Centralization of authority works best in an organization where

A. economies of scale are important

B. turnover is high

C. operating units need to collaborate

D. decision-making ability is expected of all employees

Centralization of authority works best when economies of scale are important.

What are the generic strategic plan elements according to Michael Porter?

Cost leadership, differentiation, and focus

Which of the following techniques is a prerequisite to developing a middle-management recruitment strategy for a company's new overseas operation?

C. Reduce costs in other areas not related to the differentiation & reintroduce at a lower price

As a result of the Dodd-Frank Act, executive compensation levels in the financial industry must be...

Exec comp for publicly held financial companies must be voted on by shareholders every 3 years as part of the "say on pay" provision of Dodd-Frank.

What are the 3 steps to control during the Operations business function?

Observe, compare, decide.

Which is typically part of an environmental scan?

A. Review of internal salary survey data

B. Analysis of minority employees within the organization

C. Analysis of unemployment rates

D. Analysis of the organization's labor contract

C. Unemployment rates, which are an external factor, are part of an environmental scan.

A narrow span of control is BEST used when:

A. a team effort is not required

B. tasks are complex

C. there is a shortage of managers

D. subordinates are experienced

B. Narrower spans of control are typically used when tasks are complex, subordinates are poorly trained or inexperienced, or a team effort is required.

What is the first phase in the strategic planning process?

A. Implementation

B. Evaluation

C. Formulation

D. Development

C. Strategy formulation is the first phase of strategic planning.

The House of Representatives passes a bill & sends it on to the Senate. The Senate makes substantive changes to the bill. What happens next?

A conference committee is formed to reconcile the differences. If an agreement is reached, both houses must approve the conference report. If they cannot agree, the bill is dead.

What is a likely strategy for a retailer trying to manage the risk of interrupted merchandise supply?

A. Eliminate vulnerable product lines

B. Implement binding contracts with suppliers

C. Install a new inventory level tracking system

D. Identify & develop multiple vendor relationships

D. Having multiple lines of supply will reduce the risk of an interruption in merchandise supply

An organization has designed and published its values, provided training on the values & outlined an individuals responsibilities to uphold the values.

What is this called?

Code of Ethics

What employment data would probably be of most interest to a CFO?

A. Workforce skill set compared to marketplace benchmarks

B. Feedback from annual employee surveys

C. Trends in average compensation

D. Demographic information

C. Trends in average compensation

How are the strategic planning process and environmental scan related?

SWOT analysis is typically part of the strategic planning process. The environmental scan focuses on external factors to provide additional information for strategic planning.

Of the 4 elements associated with marketing (promotion, price, product, place), which includes supply chain management?

Place refers to distribution. Placing a product requires marketers to think about how the product gets from the manufacturer to the customer. This process is known as supply chain management.

What type of organizational structure exists when a field HR unit reports directly to Corporate HR?

Functional structure

The design of a new corporate citizenship philosophy represents which of the following HR roles?

A. Tactical

B. Strategic

C. Operational

D. Administrative

B. Strategic

A bill originates in a House committee & is forwarded to a subcommittee for further review. The subcommittee conducts hearings & amends it. At this stage, the bill is sent to:

House committee for a vote. This procedure is called "ordering a bill reported."

Which is MOST likely to occur in the economy when interest rates are high?

A. Increase in gross domestic product

B. Shortage of skilled employees

C. Decreases in salaries and productivity

D. Decreased investment in tools & equiment

D. Decreased investments in tools & equipment. During high inflation, consumers are less likely to purchase items. This leave companies with less money to invest, and if they have to borrow money it will be at a higher rate & expenses will increase.

A small grocery store conducts strategic planning & identifies their decreased sales are due to a new chain grocery store in the area. This information is what part of a SWOT analysis

Threat

The most significant reason the IT is seen as a strategic partner in an organization is that...

Technology can provide a competitive advantage for a company

Decentralization works best in organizations where:

A. a quick response to problems is desired

B. employees don't want additional responsibility

C. contracts are negotiated with outside agents

D. a uniform policy is important

A. When decision-making authority is given to lower levels in an organization's hierarchy, it typically produces quick responses to problems.

Which action BEST illustrates HR's strategic role in the organization?

A. Influence & affect management's view on organizational change

B. Deal with resistance to organizational change

C. Monitor & ensure compliance with change

A. Influence & affect management's view on organizational change

Which statement about a balance sheet is true?

A. Vacation time isn't reflected on a balance sheet

B. Transactions that aren't measured in money may also be recorded

C. Prepaid expenses are not reflected on a balance sheet

D. Balance sheets change as each transaction is recorded

D. Balance sheets change as each transaction is recorded

Roles of HR during change

Show personal commitment & positive attitude

Involve people in the change

Ensure management is visible & supports the change

Communicate with employees

Reinforce change with incentives

Anticipate resistance

The financial statement showing how an organization's assets, liabilities & equity balance out at a given point in time is called...

Balance sheet

This department is typically characterized by being a "practical dreamer" with creativity, systematic problem solving, team work, systematic problem solving, and weighing what can be done technically with issues like quality & flexibility without cost parameters

Research & Development (R&D)

Part of Operations is coordinating purchasing and truck distribution. A union strike of drivers would limit the operational system's...

capacity

Some disadvantages of this type of organizational structure are: isolation from colleagues with similar areas of expertise, loss of economies of scale, miss seeing improvements in other areas

Divisional structure

A legislative measure limited in effect to either the Congress or one of its chambers.

Resolution

Calculations designed to describe an organization’s financial health and performance from various perspectives.

Financial ratios

Ratio of value created to cost of creating that value; allows management to determine the financial impact particular activities and programs have on an organization’s profitability.

Cost-benefit analysis

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